MercoPress. South Atlantic News Agency

Brazil's nine month inflation 2%

September's consumer prices index in Brazil crept 0.2%, above expectations and August's 0.05%, according to the Brazilian Geography and Statistics Institute

During the first nine months of 2006, inflation accumulated 2%, below the 3.95% of the same period last year and in the last twelve months, 3.7% also below the 3.84% of 2005 and 4.5% Brazilian Central Bank target for the whole of 2006. Brazil's inflation last year was 5.69%.

According to IBGE, items with the greatest impact in September include cigarettes; non qualified labor salaries; clothing and water and sewage rates. Cigarette prices went up 2.72% and non qualified labor salaries, 1.97%; sewage and water rates 1.89% and Clothing, 0.46%.

In related news the Brazilian Development Ministry announced that the 2006 export target had risen from 132 to 135 billion US dollars. Imports are forecasted to reach 91 billion US dollars with an overall trade surplus of 44 billion US dollars.

Figures from the first nine months show exports just over 100 billion US dollars and the trade surplus, 34 billion.

Foreign Trade minister Armando Meziat said that never in the history of Brazil had imports been so significant and so wide ranging. "All sectors are increasing imports, consumer goods, commodities, intermediate products, fuel and lubricants as well as capital investment", Meziat pointed out.